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(RTTNews) - Reversing the gains from Friday's session, gold prices have slumped on Monday as inflation concerns resurface while a fresh standoff arose between the U.S. and Iran in the ongoing Strait of Hormuz crisis.
Front Month Comex Gold for June month delivery has slumped by $112.20 (or 2.42%) to $4,532.30 per troy ounce.
Front Month Comex Silver for June month delivery has plunged by $2.981 (or 3.91%) to $73.185 per troy ounce.
The U.S.-Israeli war with Iran that began on February 28 and led Iran to close the Strait of Hormuz, though currently in a ceasefire phase, is showing no sign of ending soon.
Through Truth Social on Sunday, U.S. President Donald Trump stated that several countries were seeking U.S. assistance for passing through the Strait of Hormuz and announced that the U.S. will ensure safe movement for the stranded vessels.
Trump asserted that once the ships leave, they would not be returning until the situation returns to normalcy. Terming this initiative "Project Freedom" conducted as a humanitarian gesture, Trump did not provide much details. Trump also warned that any "interference" by Iran will be dealt with forcefully.
On Monday, the U.S.-led maritime task force began guiding stranded ships across the Strait of Hormuz advising on avoiding mining risks and to detour safely.
U.S. Central Command stated that the process would involve guided-missile destroyers along with 100 aircraft and 15,000 service members.
While Iran's navy stated that it turned away "enemy" warships with a "decisive warning," U.S. Central Command stated that no U.S. ships were hit. Earlier, Iranian military had issued warnings to the U.S. forces not to enter the strait.
The prevailing uncertainty kept markets on the edge.
On the diplomatic front, Trump also informed that U.S. representatives are engaged in very positive discussions with Iran and suggested potential diplomatic progress going on.
Separately, Trump rejected the latest proposal submitted by Iran, calling it unacceptable, while Iran's Foreign Ministry spokesperson Esmeil Baghaei stated that Iran is reviewing the U.S. response to its proposal.
Iran wants issues other than the Strait of Hormuz reopening to be resolved within 30 days instead of extending the ceasefire.
On the economic front, data released by the U.S. Census Bureau today revealed that factory orders in the U.S. increased 1.5% in March.
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